AP Macroeconomics Flashcards: Scarcity
Written by AP Content Team, Verified for 2026 AP Exams, Last updated: May 2026
Review key ideas with interactive flashcards. This set includes 10 cards to help you master important concepts.
What fundamental principle of economics stems from the fact that 'most resources are scarce'?
The principle that 'there is no such thing as a free lunch' stems from scarcity; because resources are limited, every choice to use a resource for one purpose means giving up another.
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What fundamental principle of economics stems from the fact that 'most resources are scarce'?
The principle that 'there is no such thing as a free lunch' stems from scarcity; because resources are limited, every choice to use a resource for one purpose means giving up another.
What is the direct and unavoidable consequence of scarcity?
The direct and unavoidable consequence of scarcity is the necessity of making choices, which leads to trade-offs and opportunity costs.
Why are individuals and societies forced to make choices?
Individuals and societies must make choices because most resources are scarce, meaning there are not enough resources to satisfy all wants.
Who is affected by the problem of scarcity?
Scarcity affects everyone, from individuals making daily decisions to entire societies making policy choices about resource allocation.
Define scarcity.
Scarcity is the fundamental economic condition where society has limited resources and therefore cannot produce all the goods and services people wish to have.
What are economic resources?
Economic resources are the scarce inputs, such as land, labor, and capital, used to produce the goods and services that societies desire.
A city government has a limited budget and must decide between repairing roads or building a new park. This situation is an example of scarcity at what level?
This is an example of scarcity at the societal level, where a collective group must make choices about how to allocate its limited resources.
You have 24 hours in a day and want to sleep for 8 hours, work for 8 hours, and socialize for 10 hours. What scarce resource forces you to make a choice?
The scarce resource is time. Since you cannot satisfy all your wants (26 hours of activity) within the limited 24-hour period, you are forced to choose.
What is the relationship between resources and scarcity?
The concept of scarcity exists because economic resources, which are required to fulfill our wants, are limited in supply.
A student has only $20 but wants to buy a video game that costs $50 and a textbook that costs $30. What economic problem does this illustrate?
This illustrates scarcity, as the student's financial resources are limited compared to their wants, forcing them to make a choice.